Private Equity
Equity Financial Holdings Inc (TSX: EQI), a Toronto-based provider of residential first mortgage loans through its affiliate, Equity Financial Trust Co, has agreed to be taken private. The deal, which is being led by Canadian activist investor Smoothwater Capital Corp, implies an equity value of about $93 million. Prior to the close of the deal, Smoothwater, an existing shareholder, will be joined by Hennick & Co, Freycinet Ventures and other investors prepared to commit capital and assume a role in the privatized company. Smoothwater will remain the controlling investor. Smoothwater CEO Stephen Griggs is currently Equity's chairman.
6 min read · 31 October 2017
Innergex Renewable Energy Inc (TSX: INE) has agreed to acquire Alterra Power Corp (TSX: AXY), a Vancouver renewable energy company that oversees power plants totalling 825 megawatts of hydro, wind, geothermal and solar generation capacity. The deal, valued at $1.1 billion, including debt, is expected to close in Q1 2018. Funding of the acquisition will include a $150 million subordinated unsecured loan provided by Caisse de dépôt et placement du Québec, an existing Innergex backer. Innergex, a Longueuil, Québec developer and operator of hydroelectric facilities, wind farms and solar farms, said the deal will diversify its assets geographically and by energy source.
10 min read · 30 October 2017
Data Communications Management Corp has agreed to acquire Bolder Graphics, a Calgary-based marketing communications specialist. Data, a Brampton, Ontario-based business communication solutions provider, agreed to pay about $4.9 million in cash, a common shares issue, a note, and the assumption of debt. In connection with the acquisition, expected to close next month, Data arranged for a $5 million senior credit facility with IAM Private Debt Group, an affiliate of Canadian alternative asset manager Integrated Asset Management Corp (TSX: IAM).
4 min read · 30 October 2017
CWC Energy Services Corp (TSX-V: CWC) has agreed to acquire the Canadian service and swabbing rig assets and ongoing operations of C&J Energy Services Inc (NYSE: CJ), a U.S. oilfield services provider. CWC, a Calgary-based contract drilling and well servicing company, will pay $37.5 million in cash for the business. The deal is expected to close next month. Debt incurred by CWC as a result of the deal will be paid down in part by an equity rights offering. The private equity group of Brookfield Asset Management, which currently owns about 72.7 percent of CWC's outstanding shares, indicated it plans to participate in the offering.
7 min read · 30 October 2017
Telus International (TSX: T, NYSE: TU) has agreed to buy Xavient Information Systems, a Simi Valley, California-based IT consulting and software services company. Telus International agreed to buy 65 percent of Xavient initially with the option to acquire the remaining interest on or before December 31, 2020. The deal, valued at about US$250 million, is expected to close this year. It will add to Telus International's IT consulting and delivery capabilities, the company said. Telus International is an affiliate of Canadian telecommunications service provider Telus Corp. Last year, Telus sold a 35 percent stake to Baring Private Equity Asia.
4 min read · 30 October 2017
Desjardins Capital has teamed up with French private equity firm Siparex to give Québec and European small and medium-sized businesses access to more trans-Atlantic opportunities. Luc Ménard, COO of Desjardins Capital, the private equity and venture capital investment arm of Desjardins Group, said the partnership will supply capital and other forms of support to help Québec companies expand into the European market. Earlier this week, Desjardins Group unveiled a new fund that will invest about $500 million in Québec small businesses over five years.
3 min read · 27 October 2017
New Look Vision Group Inc (TSX: BCI) has closed its acquisition of Iris the Visual Group, a Laval, Québec-based provider of eyecare services, including eyewear, eye exams and vision correction surgery. Montréal-based New Look, which also operates in the optical retail industry, paid $120 million for the company. The deal was backed by Fonds de solidarité FTQ, which deployed $55 million, its second investment New Look. At the time of the deal's announcement in July, New Look said the combined business will have estimated annual system-wide revenue of more than $315 million and a store network of over 375 locations.
3 min read · 27 October 2017
Canadian gold producer TMAC Resources Inc (TSX: TMR) has launched a private placement deal with U.S. mining private equity firm Resource Capital Funds (RCF) and Newmont Mining Corp. The deal, which will secure close to $30 million, will be accompanied by a public offering targeted to raise about $20 million. RCF and Newmont have the right to increase their investment relative to the results of the public offering's greenshoe option. Toronto-based TMAC said the funds raised will be used to advance its Hope Bay gold project in Nunavut and other priorites. TMAC was largely owned by RCF and Newmont when it went public in 2015.
3 min read · 26 October 2017
U.S. private equity firm Sverica Capital Management has agreed to sell Syscon Justice Systems Ltd, a Vancouver-based provider of offender management software solutions to governments worldwide. No financial terms were disclosed for the deal, which will see Syscon go to N. Harris Computer Corp, an affiliate of Constellation Software Inc (TSX: CSU), a Toronto-based acquirer, manager and builder of vertical market software companies. N. Harris said the deal expands its ability to serve correctional institutions in several key markets. Sverica acquired a majority interest in Syscon in July 2010.
2 min read · 26 October 2017
U.S. private equity fund TPG Capital has started talks with the Saudi Arabian government to bring Cirque du Soleil to the kingdom, Reuters reported, quoting TPG chairman David Bonderman. Montréal-based Cirque du Soleil, the global circus and entertainment troupe, sold a majority stake to a group led by TPG in 2015 in a deal valued at US$1.5 billion. In July, Cirque du Soleil acquired Blue Man Productions for US$65.5 million.
1 min read · 26 October 2017
